# Which of the following statements regarding the market for foreign currency exchange is true ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Which of the following statements regarding the market for foreign currency exchange is true ? Correct Answer: A. An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees depreciate. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Which of the following statements regarding the market for foreign currency exchange is true ?

Direct Answer & Quick Reference

The correct option is **A. An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees depreciate**.

A. An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees depreciate **(Correct Answer)**

B. An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees appreciate

C. An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees depreciate

D. An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees appreciate

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Verified Key: A. An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees depreciate
Solved by 5,380+ students

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*Source: https://test-prep.blog/mcq/which-of-the-following-statements-regarding-the-market-for-foreign-currency-exch-5fb2e8a9-3b35-4466-a9a9-77828193a765*
*Format: Markdown for Agents (Content Negotiation: text/markdown)*